Student Loan Overhaul begins in July

Some supporters are calling it the most significant change to college lending in a generation., after congress approved some major changes to the student loan program.

Starting in July the new law will force commercial banks out of the federal student loan market by ending federal subsidies to banks and private lenders.

Other changes expected down the road include expanding Pell Grants to keep up with inflation. In 2014, there will be limits on annual payments on a student loan to 10 percent of the borrowers yearly income.

Also with the education centerpiece comes more help to lower-income graduates to get out from student debt. Overall the Congressional Budget Office says the new lending approach will save taxpayers about 61-billion dollars over 10 years.